If the multiplier is 5 and defense expenditures decrease by 40 million, aggregate demand decreases by a total of <u>200 million</u>.
Aggregate demand is a term used in macroeconomics to describe the total demand for goods produced domestically, which include customer goods, services, and capital goods.
Aggregate demand is the whole amount of goods and services in a financial system that purchasers are willing to pay for within a positive term. Aggregate demand is calculated because of the sum of customer spending, investment spending, government spending, and the distinction between exports and imports.
In macroeconomics, aggregate demand or home final demand is the entire demand for final goods and services in an economy at a given time. It is often referred to as an effective call for, although at other times this time period is distinguished. this is the demand for the gross domestic product of a country.
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